Consider Separate Entities for Your Business

All of the assets relating to your business operation do not necessarily have to be in the same company. There may be perfectly valid business reasons to have real estate, equipment and/or other assets in separate entities. The following chart provides an example of a possible business structure.

Many assets in the above structure are not part of the operating company. So a judgment against the operating company may have no impact on the other assets.

Each situation of course has to be examined on its own. Asset transfers can have tax consequences. But there can be valid business reasons for using multiple entities – – and this may provide significant protection for many of the assets utilized in your business.